Rizio Co. purchases a machine for $14,200, terms 2/10, n/60, FOB shipping point. The seller prepaid the $321 freight charges, adding the amount to the invoice and bringing its total to $14,521. The machine requires special steel mounting and power connections costing $982. Another $463 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $250 in damages occurred. Materials costing $40 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages.

Amount Included in Cost of Equipment:
Invoice price of machine	$14,200
Less: Discount
Net purchase price	14,200
Freight charges
Mounting and power connections
Assembly
Materials used in adjusting
Total cost to be recorded	$14,200